Major Gulf stock markets rebounded on Thursday, supported by steady non-oil private sector growth and renewed investor optimism following a trade agreement between the United States and Vietnam, just ahead of the July 9 tariff deadline.
U.S. President Donald Trump signed a deal with Vietnam on Wednesday imposing a 20% tariff on exports to the United States — significantly lower than the previously threatened 46%. The move gave markets reason to hope the impact of the tariffs on global trade may be less severe than initially feared.
Saudi Arabia’s benchmark index rose 1%, reaching its highest level in over a month, with almost all constituents posting gains. Saudi National Bank, the kingdom’s largest lender by assets, surged 4.1%, while oil giant Saudi Aramco added 0.9%.
BlackRock Inc. was reportedly in talks with Aramco to divest its stake in the leasing rights of a natural gas pipeline network — a deal potentially worth billions of dollars, according to Bloomberg. Reuters could not independently verify the report.
Retailer Fawaz Abdulaziz Al Hokair & Co. was the day’s top performer, jumping 9.9%, followed by Saudi Telecom, which rose 1.2%.
Market optimism was also fueled by strong domestic data. Saudi Arabia’s non-oil private sector expanded at its fastest pace in three months in June, according to a new survey. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 57.2 from 55.8 in May, remaining well above the 50-point growth threshold.
Dubai’s main index gained 1.4% to close at 5,748 — its highest in 17 years — with most sectors trading in positive territory. Emaar Properties climbed 3.7%, while tolls operator Salik advanced 3.4%.
In Abu Dhabi, the benchmark index rose 0.6%, supported by gains across sectors. Presight AI surged 6%, reaching its highest level in nearly two years, while Space42 rose 4.3%.
The UAE’s non-oil private sector also expanded steadily in June despite regional tensions, as companies ramped up output to clear backlogs, according to a separate survey released Thursday.
Qatar’s main index added 0.6%, lifted by a 0.5% gain in Qatar National Bank.
